Today’s labour market data tell us a bit more about how the labour market is responding to high inflation and the cost of living shock. We see some things we would expect, some things which may be surprising, and much that remains unresolved.
The most eye-popping statistic in today’s labour market data is also the one that is easiest to explain. Real regular pay fell by 2.8 per cent in the three months to May – the biggest fall since this measure was first recorded in 2001 (see Figure 1), and almost certainly for much longer – perhaps as much as 45 years. This is the simple consequence of unexceptional 4.3 per cent growth of nominal wages and very high CPIH inflation of 7.3 per cent. As price inflation accelerates, this measure of real pay is likely to continue to fall in annual terms for many months to come.
Chosen excerpts by Job Market Monitor. Read the whole story @ Feeling poor and working more – again • Resolution Foundation